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Chile minimum wage increases to CLP 539,000 effective January 1, 2026

CL Chile Minimum Wage In effect since January 1, 2026

Chile's statutory minimum wage rises to CLP 539,000 for standard adult workers (ages 18-65) effective January 1, 2026, under Law No. 21,751. Reduced rates apply to workers under 18 and over 65 (CLP 402,082) and non-remunerational thresholds (CLP 347,434). The change also raises the legal profit-sharing cap under Article 50 to CLP 2,560,250 annually (CLP 213,354 monthly). All employers in Chile must comply with the new rates.

Chile's statutory minimum wage rises to CLP 539,000 per month for standard adult workers (ages 18–65) effective January 1, 2026, under Law No. 21,751. The change also raises reduced-rate minimums for workers under 18 and over 65 to CLP 402,082, and the non-remunerational minimum wage to CLP 347,434. The new rates increase the legal profit-sharing cap under Article 50 to CLP 2,560,250 annually (CLP 213,354 monthly).

Who is affected

All employers in Chile must comply with the new minimum wage rates. The standard rate applies to workers aged 18 to 65. Workers under 18 and over 65 receive the reduced rate of CLP 402,082. Employers using the Article 50 legal profit-sharing system (gratificación legal) must recalculate annual and monthly caps based on the updated minimum wage.

What's changing

Category Rate effective January 1, 2026
Standard adult minimum wage (ages 18–65) CLP 539,000
Minors and seniors (under 18 and over 65) CLP 402,082
Non-remunerational minimum wage CLP 347,434

The legal profit-sharing annual cap is now CLP 2,560,250 (4.75 times the minimum monthly income in effect on December 31). The monthly cap is CLP 213,354. Workers earning monthly remunerations above CLP 853,417 will reach the 25% monthly cap; employees below this threshold receive exactly 25% of their base remunerations.

Example: An employee earning CLP 600,000 per month receives CLP 150,000 in monthly profit sharing (25% of remunerations). An employee earning CLP 1,200,000 per month receives CLP 213,354 (the monthly cap), not CLP 300,000.

What NEO partners and clients should do

  • EOR clients: No action required. NEO will process contract amendments automatically once the new rates are officially confirmed. Clients will be notified when amendments have been applied.
  • Payroll clients: Update salary configurations to reflect the new minimum wage tiers before the first payroll run on or after January 1, 2026.
  • Payroll clients: Recalculate legal profit-sharing amounts for employees subject to the Article 50 system. Review pay settings for all employees in affected categories, including minors, seniors, and those subject to non-remunerational thresholds.

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